Peraffic Online Marketing Campaign
An endless stream of cost-effective leads.
After the Traffic Trial...
Once your Peraffic Traffic Trial is completed, youíll need
to make TWO choices:
- Choose your monthly campaign budget
- Choose your target cost per enquiry
Usually, itís pretty obvious what the budget should be,
based on the data from the trial. Hereís a graph to illustrate the point:
(click to see a larger image)
The area marked A shows the free enquiries, when no ads
are running; letís say (in this example) thatís about 4 enquiries per month.
Obviously the cost per enquiry is $0, so this is a safe investment.
Area B is where you run ads, but the budget is too low,
and thatís seriously limiting enquires; this produces comparatively expensive
enquiries (in this example, up to $40-45 per enquiry).
In area C, things are improving; each additional $100 is
bringing in another 3-5 enquiries, so the cost-per-enquiry falls.
Area D is the sweet spot, where you get lots of enquiries,
at the lowest cost per enquiry.
In area E, your campaign is now limited by traffic;
increasing the budget has only a minimal effect on enquiries, and the
cost-per-enquiry rises again.
1. Choosing your monthly campaign budget
In reality, we donít produce such a pretty graph.
Nevertheless, the answer is usually obvious, based on your margins and
In the above example, if the average margin generated per
sale was $400, and you closed 1/4 of the enquiries, then each enquiry is
worth about $100 to you. So, youíd set the budget in Area E, because the
cost-per-enquiry is still acceptable; you want every possible enquiry.
If the sales were less reliable or less valuable though, youíd
aim for Area D, to reduce your acquisition cost, minimise your risk and
maximise your returns.
And if the average margin per enquiry didnít justify Area
D (so in this case, if you could not confidently harvest $35 per enquiry),
then you would cut the budget to $0 and just get the free enquiries.
Every 9 months, you should manipulate the budget again, to
get a feel for the current traffic levels. So even if you set a $0 budget,
you might spend $1,000 every 9th month, just to check; if traffic has risen,
you might be able to establish a profitable budget and increase your sales.
2. Choosing your target cost per enquiry
Cheaper is better, right?
Nope. If your goal is to maximise your Gross Profit $$,
then cheaper is not always better... if $100 per enquiry x 100 enquiries gets
you 30 sales with average GP of $2,000 per sale, then you're spending $10,000
(advertising $$) and making $60,000 (gross profit $$). A good return.
But if you drop your budget to achieve a lower cost of $80
per enquiry, and that only generates 50 enquiries and 15 sales, then you've
spent less on advertising ($4,000) but made far less GP ($30,000). That's a
higher PERCENTAGE profit but a lower ACTUAL profit.
Now obviously, the best answer is to lower the cost
per enquiry WITHOUT lowering the number of enquiries.
Your Peraffic Consultant will discuss this with you, with
support from the technical team. The idea is to evaluate the
cost-effectiveness of applying a tuning programme as part of your monthly
A tuning programme applies the Peraffic 27 Step Process
(spread over 3-4 months) to your campaign. It costs a little extra (usually
$1,000 per month for 3-4 months) and has a very specific goal: to halve your cost per enquiry.
How do we do it? Actually it's very systematic, but it'll
take a lot more than one or two pages to explain... click here to read more about this process.
Should you do it?
If, and only if, halving the cost per enquiry
makes commercial sense, based on the return you are getting and your
GP$ per sale.
An endless stream of cost-effective leads
If you are speaking with a Peraffic Consultant right now (reviewing
your Traffic Trial results), they will assist you in setting the budget for your
Ongoing Campaign, and help you to decide if you should invest in reducing
your cost per enquiry.
To speak with a Peraffic Consultant, click here to book a consultation!